TechnicalsVolume indicators relative strength index Base Ascending Triangle (or Rising Triangle) V Pattern 50% Principle (one-half retracement)
Fibonacci ratios and retracements
In finance, there are certain levels that can be applied to both price and time, although they are more commonly used on prices. These levels, known as Fibonacci retracement levels, include 61.8%, 38%, and 50%. When a reversal begins, these levels are calculated based on the movement's low to high and represented by horizontal lines. They are then interpreted as potential stopping points for counter moves. Interestingly, the Fibonacci ratios were not only used in finance but also by Greek and Egyptian mathematicians, known as the Golden Mean. This ratio was applied in areas such as music and architecture. Additionally, the Fibonacci spiral, which follows natural growth patterns, is a logarithmic spiral.
Related terms
Understand the meaning and definition of Volume indicators in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of relative strength index in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Base in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Ascending Triangle (or Rising Triangle) in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of V Pattern in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of 50% Principle (one-half retracement) in the context of stock market, trading, and investments.
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